ERHC Energy Inc (ERHE)

[RubyMartin]

Govt lists terms for oil blocks award

* Seeks N37b for power projects
From John-Abba Ogbodo and Emeka Anuforo, Abuja

TO avoid the controversy that trailed award of oil blocks in the various bid rounds during the last administration, the Federal Government has proposed stringent conditions for subsequent exercise in the country.

The new conditions are coming as the government expressed displeasure at the failure of its agencies to come up with alternative sources of power generation in the country.

Also, about N36.995 billion is required to complete outstanding projects and connect most communities in the country to power.

In an executive bill to the National Assembly on award of blocks, President Umaru Musa Yar'Adua said applications for either petroleum prospecting licence or petroleum mining lease should state clearly whether they are for crude oil or natural gas because there would be no approval for both.

"Every petroleum prospecting licence or petroleum mining lease shall clearly state that it shall be in respect of either crude oil or natural gas, but not of both crude oil or natural gas," section 257(2) of the bill says.

Section 2572 further states: 'Where a company having a licence or lease in respect of crude oil or natural gas desires to also engage in operations relating to either crude oil or natural gas that is not covered under the company's existing licence, that company may apply to the minister for the said licence or lease in respect of either crude oil or natural gas, the application of which shall not be unreasonably refused."

http://www.ngrguardiannews.com/news/article01//indexn2_html?pdate=060109&ptitle=Govt%20lists%20terms%20for%20oil%20blocks%20award